CIMB Daily Fixed Income Commentary - 19 May 2014

Good Morning,

Market Roundup

• On Friday, US Treasuries weakened post announcement of stronger-than-expected housing report, along with profit taking activities after seeing the rally over the week.
• Malaysian government bonds posted losses along the curve, led by players’ profit taking activities ahead of the release of GDP data. Trading volume was relatively thin on Friday, amounted to RM1.9 billion.
• THB denominated government bond yields were a tad lower on the curve belly, driven by strong net buying interest shown by local players. Trading volume rose by 8% to THB1 trillion on Friday, while CB14603A from SA segment was actively traded by THB23.3 billion throughout the day.
• IDR denominated government bond market moved mixed in narrow range on Friday. Although the market moved in sideways, but govvies still booked relatively hefty volume with total amount of IDR15.44 trillion, improved marginally from previous day. We saw that benchmark and several off-the-run series booked significant value transacted on the day.
• Asian dollar credits moved in mixed directions, while Indian credits inched up on the back of the opposition parties won by majority in the election. We noted that IDBI Sep’19 closed 3bps tighter to 282bps, along with ICICI May’19, which was also traded 3bps tighter to 204bps on Friday.

Best Regards,
CIMB Fixed Income Research
Corporate Banking, Treasury and Markets
Tel: +603 2261 8888 | Fax: +603 2261 8705
www.cimb.com

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